Title: Gold Up as U.S. Dollar Weakened by Softening Inflation Expectations

Jun 28, 2022 12:46AM ET

By: AnalysisWatch

Gold prices rose in Asia Tuesday morning as the U.S. dollar weakened on falling inflation expectations.

Gold futures rose 0.12% to $1,826.75 an ounce by 12:45 AM ET. The dollar, which usually moves inversely to gold prices, also rose Wednesday morning. Weakening inflation expectations led to a reassessment of the prospects for aggressive rate hikes.

Yields on 10-year U.S. Treasury bonds stabilized, keeping the rise in gold prices in check.

In a bid to tighten sanctions against Russia over its invasion of Ukraine, the U.S., U.K., Japan, and Canada also plan to announce a ban on new gold imports from Russia during the G7 summit.

At the ECB event this Wednesday, President Christine Lagarde, U.S. Federal Reserve Chairman Jerome Powell, Bank of England Governor Andrew Bailey, and Cleveland Fed President Loretta Mester will speak at the ECB event.

The core U.S. durable goods orders data, which measures the total value of new orders for durable manufactured goods, rose 0.7% in May.

In Asia-Pacific, official data from Hong Kong on Monday showed China's net gold imports through Hong Kong rose 58.3% in May from the previous month as COVID-19 restrictions in major cities were eased.

Among other precious metals, silver slipped 0.02%. Platinum rose marginally by 0.01%, while palladium gained 0.94%.